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Ramalingam

Ramalingam Kalirajan  |7159 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Feb 02, 2024

Ramalingam Kalirajan has over 23 years of experience in mutual funds and financial planning.
He has an MBA in finance from the University of Madras and is a certified financial planner.
He is the director and chief financial planner at Holistic Investment, a Chennai-based firm that offers financial planning and wealth management advice.... more
Asked by Anonymous - Jan 09, 2024Hindi
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Is ICICI Prudential S&P BSE Sensex Index Fund Direct Growth good to invest in longer term.I have been investing for 3 years now .Getting XiRr of 17%

Ans: If you are not able to select a good actively managed equity fund, then you can continue to invest in this.
DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Users are advised to pursue the information provided by the rediffGURU only as a source of information to be as a point of reference and to rely on their own judgement when making a decision.
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Ramalingam

Ramalingam Kalirajan  |7159 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 18, 2024

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I have invested rs 5 lac in axis tax saver direct growth on 10th april.is it a good fund and can i tansfer to direct IDCW plan.
Ans: That's a great question! Investing Rs. 5 lakh in Axis Tax Saver Direct Growth on April 10th shows initiative. Here's a breakdown of your current fund and the pros and cons of Direct vs. Regular Mutual Fund investment plans:

Axis Tax Saver Direct Growth:

Reputable Fund House: Axis Mutual Fund is a well-established fund house.

Tax Benefits: ELSS (Equity Linked Savings Scheme) funds offer tax deductions under Section 80C.

Direct Plan: You've chosen a Direct Plan, which has a lower expense ratio (fee) compared to a Regular Plan. However, there are some trade-offs to consider:

Disadvantages of Direct Plans:

No Advisor Guidance: Direct plans don't involve a distributor or advisor. You'll need to do your own research and choose funds.

Limited Support: There might be limited hand-holding or investment guidance compared to a Regular Plan.

Portfolio Management: The responsibility of monitoring your portfolio and making adjustments falls on you.

Benefits of Regular Plans (through a Mutual Fund Distributor - MFD):

Personalized Advice: An MFD can assess your risk tolerance and goals, recommending suitable funds.

Ongoing Support: They can provide ongoing support, answer your questions, and help navigate market fluctuations.

Convenience: They handle paperwork, account opening, and transactions, saving you time.

MFD with CFP Qualification:

Expert Guidance: Consider an MFD with a Certified Financial Planner (CFP) qualification. They have advanced financial planning knowledge and can create a personalized investment plan for you.
Considering Transfer to IDCW Plan:

Exit Load: Check if Axis Tax Saver Direct Growth has an exit load (fee for exiting within a specific period).

Similar Investment Style? Ensure the IDCW plan has a similar investment style and tax benefits as your current fund.

Review Both Funds: Research both Axis Tax Saver Direct Growth and the IDCW plan to compare their performance and investment strategies.

Remember:

Long-Term View: Focus on your long-term investment goals. Equity markets can be volatile in the short term.

Diversification Matters: Consider if this ELSS fund fits with your overall asset allocation (mix of investments).

By potentially consulting an MFD-CFP, you can gain valuable guidance and build a portfolio aligned with your goals, even if you decide to stick with your Direct Plan!

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |7159 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Aug 08, 2024

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Kotak Nifty Midcap 50 Index fund Direct Plan growth - Pl suggest is it good for investment for new entry investors.
Ans: Index funds track a market index. They aim to match the index's performance. They offer lower costs and less active management.

Disadvantages of Index Funds

Limited Flexibility: Index funds are bound to the index. They can't adapt to market changes.

Average Returns: They aim to match, not beat, the market. Actively managed funds often outperform.

Market Risk: They mirror the market. In a downturn, they suffer equally.

Benefits of Actively Managed Funds

Professional Management: Experienced managers make investment decisions. They aim to outperform the market.

Flexibility: Managers can adjust the portfolio based on market conditions.

Potential for Higher Returns: Active funds often deliver higher returns than index funds.

Disadvantages of Direct Funds

No Advisory Support: Direct funds bypass intermediaries. Investors miss out on professional advice.

Time-Consuming: Managing direct investments requires time and knowledge. Many investors lack both.

Risk Management: Without a Certified Financial Planner, investors may struggle with risk management.

Benefits of Regular Funds with MFD and CFP

Expert Guidance: A CFP offers tailored advice. They help in selecting the right funds.

Convenience: Investing through an MFD and CFP saves time. They handle paperwork and portfolio management.

Risk Management: CFPs help in managing and mitigating risks. They provide a balanced portfolio strategy.

Kotak Nifty Midcap 50 Index Fund Overview

This fund tracks the Nifty Midcap 50 Index. It invests in 50 midcap companies. It offers exposure to mid-sized companies.

Performance and Risks

Potential Growth: Midcap companies can grow quickly. They offer higher returns than large caps.

Volatility: Midcaps are more volatile. They carry higher risk than large caps.

Market Dependence: The fund's performance depends on the midcap market. In a downturn, it can underperform.

Suitability for New Investors

Risk Tolerance: New investors must assess their risk tolerance. Midcap funds can be volatile.

Investment Horizon: Longer investment horizons can mitigate risks. Midcap funds need time to grow.

Diversification: Ensure a diversified portfolio. Don't invest solely in midcap funds.

Recommendations for New Investors

Seek Professional Advice: Consult a Certified Financial Planner. They provide personalized guidance.

Start with Balanced Funds: Consider funds with a mix of large, mid, and small caps. This reduces risk.

Gradual Investment: Invest gradually through SIPs. This averages out market volatility.

Building a Strong Portfolio

Diversification: Spread investments across asset classes. Include equity, debt, and liquid funds.

Regular Monitoring: Review your portfolio regularly. Adjust based on performance and goals.

Emergency Fund: Maintain an emergency fund. It covers unexpected expenses and avoids dipping into investments.

Final Insights

Investing in the Kotak Nifty Midcap 50 Index Fund requires understanding its risks and potential. For new investors, a balanced and diversified approach is essential. Consulting a Certified Financial Planner can provide the expertise and guidance needed for a robust financial strategy.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Latest Questions
Milind

Milind Vadjikar  |702 Answers  |Ask -

Insurance, Stocks, MF, PF Expert - Answered on Nov 26, 2024

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Hi Experts, I seek your guidance on my mutual fund portfolio. Below are the details: Total Portfolio Details: - Total Invested Amount: ?15,76,159 - Current Value: ?19,35,234 - Total Returns: ?3,59,075 (+22.78%) - XIRR: 20.75% Monthly SIP Contribution: ?1,18,000 Breakdown of monthly SIP contributions across funds: 1. Parag Parikh Flexi Cap Fund Direct Growth – ?30,000 2. SBI Large & Midcap Fund Direct Plan Growth – ?15,000 3. SBI Magnum Mid Cap Fund Direct Plan Growth – ?20,000 4. Nippon India Large Cap Fund Direct Growth – ?30,000 5. Nippon India Small Cap Fund Direct Growth – ?7,500 6. ICICI Prudential Technology Direct Plan Growth – ?10,000 7. Quant Small Cap Fund Direct Plan Growth – ?7,500 8. HSBC Small Cap Fund Direct Growth – ?5,000 9. Edelweiss US Technology Equity Fund of Funds Direct Growth – ?5,000 Can you suggest if I am on track to create 5 CR corpus in 10 years I have ?25 lakh invested in a Fixed Deposit (FD) in my mother’s account, earning an interest rate of 7.75%, to generate tax-free returns. Additionally, I’m planning to purchase a plot worth ?30–50 lakh in the next 1–2 years. Is it a good idea to keep the money in FD for now, or are there better short-term investment options I should consider to maximize returns while keeping the funds accessible for my future purchase? Looking forward to your suggestions! Thank you!
Ans: Hello;

Your monthly sip value adds upto 1.3 L however you have claimed it to be 1.18 L. (Maybe a typo).

Existing corpus(19.35 L) and monthly sip (1.3 L) won't reach 5 Cr in 10 years.

You have two options to make it happen:

1. Increase monthly sip amount to 1.9 L.

2. Top-up current monthly SIP of 1.3 L by minimum 10% each year for 10 years.

Both ways will lead you to a corpus of 5 Cr over 10 years.

You may consider money market mutual funds for parking your funds for a 1 year horizon. Returns may be comparable to FD returns but with flexibility to withdraw anytime. They typically have low to moderate risk.

Happy Investing;
X: @mars_invest

...Read more

Nayagam P

Nayagam P P  |3928 Answers  |Ask -

Career Counsellor - Answered on Nov 26, 2024

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Is doing BBA + Law (Honors) from BITS Law is worth
Ans: Anju, prior to addressing the question, I would like to draw your attention to a recent article in 'The Times of India' which indicates that a majority of law graduates tend to favor employment in corporate settings over practicing in courts. Now, coming to your question, please note, BITS Law School's BBA + LLB (Hons) program is a 5-year program that combines business administration with legal studies. The program focuses on areas such as corporate law, intellectual property, business laws, and dispute resolution. The program offers a strong multidisciplinary approach, preparing students for careers in corporate law, legal consultancy, and management. Its strengths include a business + legal acumen curriculum, industry-driven curriculum, and a reputation for excellence in education and placement opportunities. However, it lacks the legacy and alumni network of top-tier law schools and can be expensive. Career opportunities include corporate and business law, management roles, consulting, entrepreneurship, academia/research, international arbitration, cyber and technology law, corporate governance, and intellectual property rights. The program is worth considering if you aim for a corporate or business law career, are comfortable with the cost and value of the BITS brand, and have excellent industry connections and internships. Build your profile well by the time you complete your BBA+LLB & improve your all other skills required. All the BEST for Your Prosperous Future.

To know more on ‘ Careers | Education | Jobs’, ask / follow Us here in RediffGURUS.

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DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Investment in securities market are subject to market risks. Read all the related document carefully before investing. The securities quoted are for illustration only and are not recommendatory. Users are advised to pursue the information provided by the rediffGURU only as a source of information and as a point of reference and to rely on their own judgement when making a decision. RediffGURUS is an intermediary as per India's Information Technology Act.

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